By Liz Scavnicky-Yaekle
At Millennial Title, our staff consists of professionals with experience in legal matters, contracting, real estate sales, purchases and development. We concur with real estate experts that the prime home selling season begins each spring and lasts through the summer. Here are five reasons why now is an ideal time to sell your home.
- Prices peak during the prime season. Unlike traditional economic wisdom which states that the more supply available, the lower the price, residential real estate often works in the opposite manner—the more inventory on the market, the greater the asking price. Jonathan Smoke, Chief Economist at Realtor.com summarized it this way, “It sounds counterintuitive, but it’s a function of demand being very seasonal, driven by weather and school year.” Essentially, the supply of homes relative to demand is much tighter in spring and summer than during fall and winter months.
- More (and current) comps are available. To determine your home’s value, property appraisers evaluate comparable housing data. There is typically less data available during the winter months which means that a home which sold below its value may be the only data point available for appraisers to take into account. Rule of thumb—the more comps available, the better your chances of taking advantage of compelling comps for your home’s valuation purposes.
- Statistics say so. Experts have performed statistical analyses to ascertain the best time to sell homes. Statistics proved that when houses and condominiums are listed during late summer months, like August, the chances of selling them reduces considerably as demand dries up. One of the contributing factors to this seasonality correlation is the fact that most families buying a new home want to be completely moved and settled into their new home before the school year begins for their children.
- Bring on the bidding wars! While every buyer fears a bidding war, they are every seller’s dream! You are more likely to encounter multiple offers for your home by listing when there is a large supply of homes available on the market. Smoke said you want to, “Put your home on the market pretty near when inventory is at a high. There’s more chance for bidders and multiple offers.” The benefits of bidding wars extend beyond the sales price. For example, buyers usually make less requests for repairs when they are in a bidding war. Also, cash buyers can be extremely aggressive, so you may be more likely to receive an all-cash offer for your property.
Better weather and longer days. Every type of property—buildings, duplexes, and both attached and detached homes, looks better during the spring vs. the dreary days of the fall and winter seasons. Your property will shine brighter in the spring with everything in bloom. Also, daylight saving time extends the amount of hours prospective buyers can see your property shine during daylight.